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AEML Reveals Challenges in Developing EV Ecosystem in Indonesia

| Source: CNBC Translated from Indonesian | Economy
AEML Reveals Challenges in Developing EV Ecosystem in Indonesia
Image: CNBC

The Deputy Secretary General of the Electric Mobility Ecosystem Association (AEML), Dhery Rachman, revealed that the electric vehicle (EV) supply chain in Indonesia is steadily improving. This development is highly beneficial for consumers, as it offers more choices and increased competitiveness.

However, he emphasised the importance of developing a comprehensive EV ecosystem in Indonesia to encourage consumers to transition to electric vehicles. He noted that the primary challenge is ensuring consumer comfort. Furthermore, current geopolitical tensions are undeniably impacting the supply chains for batteries, minerals, conductors, and technology. Nevertheless, he views this as an opportunity to diversify the supply chain within Indonesia, during an event titled “Building a Resilient Automotive Ecosystem Beyond EV Amid Global Supply Chain Shift” organised by CNBC Indonesia and DBS.

According to Rachman, the lack of synchronisation within the ecosystem—specifically regarding batteries, charging infrastructure, financing, and repair workshops—remains a current weakness. He expressed hope that these elements could progress in unison, especially considering that declining global purchasing power also presents a challenge.

“EV development must happen collectively; if one component is hindered, it will affect the whole. In our view, if we move together, we can progress much faster,” concluded Dhery.

On the other hand, the Director of the Institutional Banking Group at DBS Bank Indonesia, Antonius Sehonamin, stated that the automotive industry must be viewed as a single, unified ecosystem rather than separate segments. In this context, he noted that the banking sector, including DBS, plays a vital role in supporting the entire industry value chain. “For DBS, we aim to be the banking partner for all industry players,” he said.

He added that DBS observes the entire automotive business chain, from the upstream sector and Original Equipment Manufacturers (OEMs) to distributors and dealers. In addition to offering comprehensive banking solutions, Antonius mentioned that DBS possesses regional connectivity advantages that can support cross-border transactions for automotive industry players in Indonesia.

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